The private rental sector in the UK generates more income than 130 world nations and FTSE 100 companies, new research shows.
The research by lettings platform, Bunk, which looked at the income generated by the nation’s private rental sector and how this compares to the GDP of world nations and the FTSE 100, found that across England, Scotland, Wales and Northern Ireland there are 5,204,000 tenants currently renting in the private sector.
When multiplying the number of tenants in each county in the UK by the average annual rental cost, the estimated annual value of rental payments in the private sector currently stands at £51.9bn.
This is greater than the Gross Domestic Product (GDP) of more than 100 countries.
If the UK’s tenants were to club together and form an independent rental nation, their financial contribution would surpass the entire nation of Myanmar (Burma) with a GDP of £51.8bn, as well as the economic efforts of Luxembourg (£48.1bn), Panama (£47.6bn), Uruguay (£45.6bn) and Costa Rica (£44.9bn).
Elsewhere, Bulgaria (£43.8bn), Croatia (£42.2bn) and Belarus (£41.9bn) also fail to match the might of the UK rental sector, while a lot further from home, the GDP of Lebanon and Tanzania also trails the financial contribution of UK tenants.
In fact, the income generated from UK nation rent is actually a greater financial vehicle than at least another 120 world nations.
London alone could stand on its own two feet with a total annual rental sum of £17.7bn paid each year – outperforming the GDP output of no less than 80 countries around the globe.
UK rentals are not only outperforming the GDP of actual countries, but they are also surpassing the commercial might of a number of FTSE 100 companies.
The annual contribution of the UK’s private rental sector rental is a higher value than the market caps of companies like Vodafone (£39.1bn), Lloyds (£35.5bn), National Grid (£28.5bn) and Barclays (£25.5bn), among others.
Tom Woollard, co-founder of Bunk, commented: “Comparing the market value of the UK rental space to the worth of whole countries not only shows the enormity of what tenants are paying, but also the attractive proposition the buy-to-let sector still presents for landlords despite a number of changes that have dented the profitability of these investments.
“While the most recent UK GDP figures released last week show a slight decline in growth, in contrast, the private rental market continues to see a consistent increase almost across the board.
“With rents increasing and an acute shortage of properties being built for sale and to rent, we will surely see this upward trend climb further in the future - great for landlords, not as good for beleaguered tenants.
“To think, without realising it, the nation’s renters contribute more than the value of countries such as Luxembourg and Costa Rica, even with their apparent wealth in tax-avoidance and coffee, while also dwarfing the commerce giants of Vodafone and Lloyds Bank is actually quite amazing.”
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.